Industry Analysis & Industry Trends
Sanitary Paper Product Manufacturing survived the recession better than most industries in the manufacturing sector because of the number of everyday necessities that the industry provides. As the economy recovers, consumers will be able to afford more expensive and high-quality industry products, boosting revenue. Changing demographics, such as fewer babies and aging baby boomers have made for a shift in product ratios, with fewer diapers required and more incontinence products needed... purchase to read more
Industry Report - Industry Investment Chapter
The Sanitary Paper Product Manufacturing industry displays a high level of capital intensity, with depreciation expected at 37.0% of wages in 2015. This means that for every $1.00 spent on wages, $0.37 will be required for capital investment.
Capital intensity is high in this industry as it is a high-volume manufacturing industry, and so operators stand to gain substantial windfalls from even the slightest amount of unit-cost reduction by improving the production process. As a result, operators are constantly looking to invest in labor-saving machinery and equipment in order to increase productivity and reduce wages.
Over the past five years, capital intensity has grown, with workers' wages remaining steady while capital expenditure has grown... purchase to read more